New Zealand report: Higher immigration lifts house prices and employment
A New Zealand Treasury report found that the strong immigration wave of the past three years pushed house prices 7 percent higher and reduced unemployment by 0.8 percentage points. The report warned that capital investment and productivity have not kept pace with extra housing demand. The findings may also influence the Reserve Bank's annual assessment.
RNZ Business reported on a modelling study released by the New Zealand Treasury. The study estimates that the 150,000 net inflow of migrants between 2023 and 2025 lifted house prices by 7 percent and lowered the unemployment rate by 0.8 percentage points.
The report says the labour market boost, combined with insufficient capital investment, has left productivity growth running below the prime minister's target. Treasury chief economist Dominick Stephens said "most of the growth contribution comes from population, GDP per capita is sluggish".
The Reserve Bank of New Zealand will issue its annual economic assessment in August. According to Reuters, analysts it spoke with said the report's findings could slow the path of rate cuts. The New Zealand dollar showed only a limited reaction against the US dollar after the release. The government plans to publish its migration visa policy review at the end of the year.
Read next
Lebanon's ancient monuments remain at risk from Israeli strikes
According to Al Jazeera, ancient monuments in southern Lebanon remain at risk of damage from Israeli strikes as ceasefire violations continue. UNESCO and local archaeologists warn that some losses could be irreversible.
Slain Al Jazeera journalist Ahmed Wishah remembered as 'kind and principled' by Gaza colleagues
Colleen Harkin quits Australia's Liberal Party after praising One Nation
Australian auction clearance rates fall to a six-year low
RBI seen holding repo at 5.25% as Iran peace deal eases pressure, BofA says
